S&T Trends

Moving to the Cloud: A Small and Medium Enterprises Perspective

Ma. Rowena R. Caguiat, Merlin Suarez

Abstract

Small and Medium Enterprises (SMEs) are a core component of any strategy designed to achieve inclusive economic growth in Asia. While SMEs recognize the benefits of technology, the sector is slow to embrace such solutions. Cloud computing has been viewed as a promising platform for such organizations. Real-life cases have shown the positive impact of cloud computing, particularly cloud enterprise resource planning (cloud ERP) on global operations. While literature expresses the potential benefit of cloud ERP for SMEs, a formal study of its adoption issues has yet to be conducted particularly in the Philippine context. This is crucial because 99.6 % of the Philippine economy is comprised of SMEs.

This work aims to uncover these issues, viewed using the Technology-Organization-Environment Theory by employing a qualitative, multiple case study approach. In-depth interviews with the chief executives were conducted. Findings indicate that the drivers are supplier’s influence, level of maturity towards technology adoption, cost as free while the barriers are government control and influence, telecom industry/infrastructure, cost, knowledge, and data security. This study also revealed that cost is both a driver and a barrier from a Cloud adopter and a non-adopter perspective. 

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